Newport Harbor Medical Plaza Sells for $41M, Sets Transaction Record
Advanced Medical Properties has sold the class A, three-story medical office building, which is 100% leased to USC’s Keck School of Medicine. The transaction sets a record price per square feet in Orange County.
IRVINE, CA—Newmark recently revealed that it had facilitated the sale of Newport Harbor Medical Plaza in Newport Beach, CA for $41 million, approximately $1,367 per square foot. The class A, three-story medical office building, is 100% leased to USC’s Keck School of Medicine.
Newmark’s executive managing directors Sean Fulp and Garth Hogan and managing directors John Scruggs, Mark Schuessler, and Ryan Plummer represented the seller, Advanced Medical Properties, a Newport Beach-based and physician-owned development firm. The Newmark team originally procured the tenant and negotiated the long-term lease with USC in early 2020.
“This was the culmination of a long journey that we have been on with the owner,” says Scruggs in a prepared statement. “We were thrilled to land a tenant as strong as USC and then be able to execute on the sale at record pricing.”
Fulp adds that “The sale sets a new high watermark for Newport Beach medical assets and will stand out for a long time.”
The buyer was a private investor who was represented by Anton Qiu of San Francisco-based Anchor Pacific Capital.
Located at 330 Old Newport Blvd., the class A, three-story building was completed in 2020 and consists of 29,991 square feet of medical office space. USC will operate the facility as a state-of-the-art cancer treatment center and plans to collaborate with Hoag Hospital on treatment and clinical trials. The property is located across the street from Hoag’s campus and is in proximity the 55, 73, and 405 freeways as well as Pacific Coast Highway.
“This deal checked all of the boxes – credit tenant, core location, long-term lease, hospital-adjacent, new class A construction,” says Hogan.
The project was originally imagined by Dr. Emanuel Shaoulian who was the developer for the site. Shaoulian’s vision and attention to detail can be seen throughout the property that features a unique multiple curvature glass curtain wall system, ocean views and outdoor deck areas that can be activated in the future.
Schuessler concluded, “The stars aligned on this deal with record low interest rates and a dearth of quality product on the market. Our Private Capital Group was able to run an uber-competitive process that generated interest from REITs, family offices, institutional funds, private capital, and ultimately a 1031 exchange buyer that proved to be the best buyer.”